Landscaping Loans: Financing Options For Landscaping Projects

Your outdoor space can provide a great and healthy escape from some of life’s more challenging days, and a good landscaping job can turn your backyard into that much needed haven. However, depending on the size of your yard and the extent to which you want to update it, a landscaping project can put a big dent in your finances.

Because of this, many financing institutions can offer qualifying borrowers a landscaping loan to finance their front yard or backyard landscaping project.

Interested in landscaping your yard but not sure if you can afford it? Let’s explore the basics of landscaping loans, including how they work, how to qualify for one, their pros and their cons.

A landscaping loan is essentially a personal loan, which you can use for almost any purpose – landscaping projects included. Personal loans are usually unsecured, meaning they require no collateral, so whether you’re approved for the loan will depend mostly on your credit score and debt-to-income ratio (DTI).

Typically, a credit score of 670 or higher and a DTI of 36% or lower will not only be enough for approval, but they’ll allow you to get a good interest rate and a favorable repayment term. Loan amounts can range from $1,000 – $50,000, depending on the lender.

Many people want to make their house feel more like home, and a good landscaping job can be a great way to put your mark on your property. Landscaping can vary from backyard projects to larger installations such as:

• Wooden decks
• Backyard patios
• Waterfalls and ponds
• Swimming pools

For golfers, you could even install a backyard putting green if you so desired.

Along with helping you find greater enjoyment in your home, additions such as these can raise the value of your property if and when you decide to sell it.

How much you’ll need to complete your landscaping projects will depend on the complexity of the work being done, and the square footage of your yard or land. According to HomeGuide.com, a new landscaping installation can run anywhere from $3,000 – $16,000. Smaller jobs and maintenance work can start at $300 and go up to $4,000 for bigger installations, such as one for sod or a sprinkler system.

You should also consider how much a landscaper may charge per hour. When labor and materials are factored in, a homeowner could pay up to $100 an hour over several weeks of landscaping. Add in $4 – $12 per square foot, and you could be looking at a hefty price tag.

No matter how badly you want to upgrade your property, consider the upsides and downsides of taking on a landscaping loan. 

Pros

• You can receive your funds quickly, often in 1 – 7 business days.
• You’ll have fixed monthly payments, which can be tracked and budgeted for.
• You can find and compare most loan options entirely online.

Cons

• You could be stuck with a high interest rate if your credit score is on the lower side.
• Lenders may have strict credit, DTI and income requirements that make it hard to qualify.
• Interest on personal loans isn’t tax-deductible.

The personal loan application process is relatively easy and straightforward. Included are these steps:

1. Determine the loan amount you need. Before you proceed with any financing option, first figure out how much you’ll need for your landscaping project. The loan amount you apply for can affect whether you qualify for financing.
2. Look over your credit report. Get a sense of your creditworthiness by checking your credit report. A good or excellent credit score could qualify you for a low interest rate. Checking your credit report can also be an opportunity to dispute potential errors in your credit history.
3. Compare lenders. It’s best to shop around and compare multiple lenders before applying with one. Lenders vary on the interest rates and loan repayment terms they offer.
4. Apply for prequalification. Getting prequalified for a loan gives you an estimate of the interest rate and loan term you’ll qualify for. It’s best to attempt to prequalify with multiple lenders so you can compare options and find the best deal possible without hurting your credit score.
5. Get the necessary documents together. A personal loan application requires submitting various documents verifying your identity, income and employment. Having these all on hand before you apply can help keep the approval process on track.
6. Complete a full loan application. Once you’ve found your lender, submit a full application and wait to get approved or denied.
7. Accept your funds and get to landscaping. If approved, you can expect to have your loan in 1 – 7 business days. Some lenders, including Rocket Loans℠, offer same-day financing, meaning you could see your money the same day you’re approved.¹

Other loans and financing options are also available for backyard landscaping, and we’ll walk through them next.

In-House Landscape Financing

Some landscaping companies offer in-house financing that can better streamline the process of getting the funds you need. This may only be available for big projects, such as installing a swimming pool, but some companies can likewise finance a pond or waterfall. Landscape financing may also be available through local and online lenders offering home improvement loans.

Lenders that offer landscaping loans can understand the high costs that come with these jobs and will often approve borrowers for enough money to cover the full price of a project. However, these loans tend to come with high interest rates – even for borrowers with good credit. This can make an already expensive project even more so.

Home Equity Loan Or HELOC

A home equity loan, like a personal loan, can serve various purposes – only you’re securing the loan with your home’s equity. This means your home acts as collateral for the loan and your lender could foreclose on your home in the event of a default.

Similar to a home equity loan is a home equity line of credit (HELOC), which isn’t a loan per se, but a credit line you can borrow from and repay in time. This, too, carries the risk of losing your home.

0% Introductory APR Credit Card

Some credit card companies offer a 0% annual percentage rate (APR) promotional period if you sign up for a new card. You could use the card to pay for your landscaping and then repay the loan over time, free of interest. Beware, though: These introductory periods typically only last 6 – 21 months, after which you’ll be subjected to an interest rate much higher and more in line with the rates that credit cards are known for.

Savings

It’s no fun to dip into your savings, but if you have a solid emergency fund, you could always pull from there. You built that savings for a reason, though, and you’ll have to save up all over again once that money’s gone.

Landscaping can add a lot to your home, in both curb appeal and value. Although an expensive endeavor, landscaping can be worth the cost when it beautifies your home and adds some flavor to your backyard. Look over your loan options and find the one that’ll work best for you and your home.

Want to know the personal loan terms you may qualify for? Get started by seeking prequalification from Rocket Loans today.

¹Same-day funding is available for clients completing the loan process and signing the Promissory Note by 1:00 p.m. ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same-day funding, but results may vary, and your bank may have rules that limit our ability to credit your account. We are not responsible for delays that may occur due to an incorrect routing number, an incorrect account number or errors of your financial institution.